Correlation Between Ningbo Tech and Gem Year
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Gem Year Industrial Co, you can compare the effects of market volatilities on Ningbo Tech and Gem Year and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ningbo Tech with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Gem Year.
Diversification Opportunities for Ningbo Tech and Gem Year
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Gem is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Ningbo Tech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ningbo Tech Bank Co are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Gem Year go up and down completely randomly.
Pair Corralation between Ningbo Tech and Gem Year
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to under-perform the Gem Year. In addition to that, Ningbo Tech is 1.01 times more volatile than Gem Year Industrial Co. It trades about -0.1 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.02 per unit of volatility. If you would invest 444.00 in Gem Year Industrial Co on October 30, 2024 and sell it today you would earn a total of 5.00 from holding Gem Year Industrial Co or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Gem Year Industrial Co
Performance |
| Timeline |
| Ningbo Tech Bank |
| Gem Year Industrial |
Ningbo Tech and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Gem Year
The main advantage of trading using opposite Ningbo Tech and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Gem Year can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gem Year will offset losses from the drop in Gem Year's long position.| Ningbo Tech vs. Shanghai CEO Environmental | Ningbo Tech vs. Jinhe Biotechnology Co | Ningbo Tech vs. Kuang Chi Technologies | Ningbo Tech vs. Sharetronic Data Technology |
| Gem Year vs. Anhui Transport Consulting | Gem Year vs. Citic Guoan Wine | Gem Year vs. Shaanxi Broadcast TV | Gem Year vs. Eastroc Beverage Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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